Homeplus Closes All 67 Hypermarkets Starting July 13 as Bankruptcy Looms

According to Yonhapinfomax, Homeplus, South Korea's major retailer, closed all 67 hypermarkets starting July 13 due to operational fund depletion and inability to maintain facilities. The Seoul Rehabilitation Court set July 20 as a final deadline for the company to present a 200 billion won emergency fund plan; failure to do so will likely trigger bankruptcy proceedings.

The company has roughly 1 trillion won in public claims outstanding from the rehabilitation process, with priority repayment status expected to change depending on whether the court initiates "linked bankruptcy" or allows general bankruptcy proceedings. Homeplus holds only about 10.4 billion won in cash and cash equivalents as of late February, with most assets pledged as collateral by creditor Meritz Financial Group, which holds mortgages on 61 store locations. Real estate asset sales may take 1-2 years or longer.